SEBI proposes extending vault management rules to all physically settled bullion to enhance oversight
India's markets regulator, SEBI, has proposed expanding existing vault management rules to cover all physically settled bullion underlying SEBI-regulated products, including bullion exchange-traded funds (ETFs) and derivatives. This move aims to strengthen oversight of the country's rapidly growing digital bullion market and enhance investor protection. The proposal includes expanding the Electronic Gold Receipts (EGR) framework to cover all physical bullion and outlining operational guidelines for vaulting services. SEBI has invited public comments on the consultation paper until September 1, 2026, to ensure uniformity in vaulting norms and support the orderly growth of the digital bullion ecosystem.
Key Points
- SEBI plans to extend vault management regulations to all physically settled bullion under its regulated products.
- The initiative aims to enhance investor protection and market integrity in the digital bullion market.
- The Electronic Gold Receipts (EGR) framework will be expanded to cover all physical bullion.
- Operational guidelines for vaulting services across all SEBI-specified bullion instruments will be introduced.
- The move seeks to bring uniformity in vaulting norms and support the orderly growth of India's digital bullion ecosystem.
Exam Facts
- SEBI (Securities and Exchange Board of India) is India's markets regulator.
- The proposal aims to expand the Electronic Gold Receipts (EGR) framework.
- Public comments on the consultation paper are invited until September 1, 2026.
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